Showing posts with label #Sustainable Capitalism. Show all posts
Showing posts with label #Sustainable Capitalism. Show all posts

Monday, 10 August 2015

Intuitive Bias and Technology, living with limitations

The opportunity cost of living with intuitive bias…

As a race, we have evolved more rapidly in technology during the last 100 years then we have in the last 10,000 years. In fact, Science Daily claimed in 2013 that 90% of the world’s data has being produced between 2011 and 2013. A staggering fact when you think of the amount of keystrokes, touches, swipes and scans that make up that 90%!

So, we stand on the shoulders of giants who have given us the means to arm ourselves with any kind of data we need to meet our daily challenges, yet our evolution into Technology has some hallmarks that are as old as mind-kind itself, such as intuitive bias. 

Intuitive bias is the preferences we gravitate to consciously and subconsciously based on a summation of our past experiences. Ever look at a problem and get that “perfect fit” feeling in a solution that came super quick? Thats intuitive bias at work! We use our intiutitve bias in quick decisioning often on major issues, which gives rise to inherent flaws such as:

Past Assumptions - The need to deliver especially in a group setting, which invariably leads to short cuts for the individual in order to fulfill his/her part of what essentially is a social contract. Its human nature especially first time round to collect the majority of the information needed to frame a solution to the task, using deductive reasoning and past experience to assume the rest. If it fits, it fits! The problem is that the % of fact fitting that is in a solution alters for any new solutions and thus the % of assumed information increases thus skewing a factual outcome. In general, the longer something assumed is used, the more ‘real’ it gets’.


Fact Filtering - We can slip into a habit of filtering out facts that don’t fit our “world view”, thus ignoring them or rebuking the facts to the input source such as a co worker, customer or contractor working with us. This often comes across as arrogance, which may or may not be intentional. The problem however remains that intuitive bias leads to a snap decision rejecting new data that is relevant to the situation at hand.

Outdated Facts - I always love hearing a guy slap down a peer or subordinate with a “naughty boy” speech and declare an outdated solution for the problem. When pressed on this magical outcome and the facts around it, the reluctant answers always point to intuitive bias and what worked back in the day. Technology is changing our world faster than ever before and thus the value of previous experience is being depreciated by a lack of context to today’s reality.


Dogmatism - We have propensities for risk, which are linked to our resistance to change (dogmatism). In general we get more dogmatic as we grow older and have to work harder at remaining open minded and mentally flexible. It makes perfect sense when you think of the practicalities involved. The older we are the more information we have to fall back on thus intuitive bias is something we are more willing to use for more and more decisions.

Creative Thinking - Those who are creative thinkers are often high EQ folks with high levels of risk propensity and lower levels of dogmatism (type Y orientation) than someone who is more order driven and craves the security therein (type X orientation). The perfect mix between the two is someone with a risk propensity high enough and a dogma level low enough to allow creative ‘out of box’ thinking to thrive, yet appreciate the structure of the operating environment and the team setting they are in. Intuitive bias can suppress creative thinking over time in a situation that demands process obedience over expressionism. The attachment to pre-existing order regardless of its effectiveness becomes a dependency and with it the rise of intuitive bias as the secret sauce to ‘fit in’ at all costs, at the office.

So leaving a life of tedium aside for a brighter day to follow, technology has risen to support and advance the world we collectively want to live in, so why is intuitive bias such a powerful force in a world that can make generational leaps in technology in a few short years? It’s down to this, intuitive bias basically works, but at an opportunity cost! If we can get data relevant to our problem, structure it in a manner that defines our problem and with analysis frames a solution; then we are in the 21st century hotseat of data driven decision making. It will bring us most of the way to a data driven solution, which in today’s information age is when we then use our intuitive bias to query the insights gained from the analysis along with the accuracy of said insights to outcomes. We should always question and we will never stop learning! The quality of our decisions in terms of accuracy and content will push greater and greater progress on our march through time with Technology. However, should we become frail and yield unquestionably to the pre existing dominance of intuitive bias, then our Technology will be as limited as the luck we have through the ‘gut’ decisions we make.

I for one look forward to delivering a better world to our children’s children by never stopping my push forward in continuous learning and question what I see when it does not prove itself to me as facts worth accepting. In doing so, I hope to deliver better outcomes to our combined future. What do you think, are we under the thumb of our own intuitive bias??.. Do leave a comment with your opinion...


Sources/Credits

Pics;



Credits;



Monday, 6 July 2015

Intuition and Strategic Decisions...

Are yesterday’s successes a road map for tomorrow’s data driven world? 


We all marvel at the technological innovations that have changed the world at an astounding pace. From Silicon Valley California to Silicon Docks Dublin, the rate of innovation and value adding contributions to tomorrow’s world is truly a sight to behold!

What we often overlook is the human behaviours that lie beneath the surface in tech savvy business that could reasonably give cause for alarm, yet are handled daily by human beings getting on with their lives and progressing their business interests. When we humans have to make big decisions against an unreasonably tight time frame, we fall instinctively on our intuition to fill the time deficit and come out with an answer that makes sense.

After all, if it worked for our parents, our mentors and seniors in the workplace, then why cant we sit “in the big chair” and be equally if not more successful? Its noteworthy that our success using our intuition is not a matter of skill… it’s really a matter of luck when overusing our intuition in big decisions. Over 80% of senior US Executives reportedly did so in a McKinsey & Co survey I read some years ago! In doing so, we trade expediency of decision making for factual understanding of the topic and it’s context.

When working through the world of our fathers and evaluating the need for data driven strategic decision making in the world of our sons, the following is something I have reflected upon in such an evaluation:

Hyper connectivity – We have a distributed technological infrastructure that allows us to access more and more information in a more and more sophisticated manner and on a global scale. We can communicate instantly at a very low cost on a global scale and unsurprisingly we do just that!

Complexity Explosion – With dramatic increases in access to data, it’s becoming more and more clear that data driven decisions make for better outcomes. However, opportunities to adopt are still abound. On modern oil platforms, approximately **40,000 sensor tags could be deployed with currently installed systems but only a minority are actually used mainly for safety and regulatory tasks. What data could be garnered from using 100% deployment of the sensors and what could be done with it??


Faster World - We need to refine our thinking down to logic derived from data sets, as solely using a summation of our past experiences is no longer a luxury we can afford! Data driven decisions are now possible to do at scale and soon will be a requirement for maintaining a competitive edge! In short, we have less time to react when we get it wrong, so intending to be right first time needs to become policy! Intuition needs to become a minority contribution to any strategic decision-making process. It needs to surrender dominance to data driven insights, deductive reasoning and the resulting picture it presents to the executive or executive team engaged in the decision making process. If done right, executives can then use their intuition in the context of a data driven fact-based environment reducing the propensity to make wild card comparisons between the current scenario and aggregate insights from former, often unrelated experiences.

So, big data may have being ignored but we now need to tap into it to make better strategic decisions! Where do we start, how do we do it??

A difficult question, which requires customised knowledge of your business and situation. However, I submit the following is a great place to start:

Understand your problem. Define it in terms of where did it come from, what it impacts and what elements impacted have dependencies on seemingly unrelated elements inside or outside your company (e.g. regulatory, customers, etc)??? It’s always good to map them out.

Risk Assessment. If you have a risk assessment of the problem, review it for any red flags that relate to your defined problem and insights gained by the solutions proposed therein.

Data Interoperability. Are your in-house databases structured well by design? Are they SQL/RDBMS, NoSQL and/or Cloud? Is your network distributed and if so, are external vendor nodes present from the cloud? Is your data normalised (maintaining normal forms through data table parent/child relationships on RDBMS) or de-normalised (large record by row tables)? Are you set up for semi-structured data (JSON file readability)?

Data Integrity. Is the data housed in your data warehouse meaningful to your business and is it maintained properly with duplicates removed accurately and data maintained in a timely fashion?  Do you attach meaningful keys to records for RDBMS and/or keys to key value pairs outside of RDBMS?

Data context. Is your current data collection program covering data sets that are key to the problem and/or assist in the analysis of big data that will yield valuable insights for the senior team? Is 3rd party data required and if so, are you set up for this??

These are some points I think you should look at before engaging in big data analysis. Even if you feel you should proceed, the value you get from a consultant if you have already made a start will be much higher for this prior effort!


Sustainable is a relative word but adaptability is universal! In this information age, our ability to adapt to the changing environment will ultimately determine our fate, which is why big data usage is too important to not understand first and use second! Data driven processes leading to data driven decisions at the top will not only alter the success rate of the decision for the better, it will also change the culture and practice of the business to a more sustainable footing, which is the space between people, process and technology; securing a path ahead to a better tomorrow! All this in mind, why not start looking at your big data options today?  You may be pleasantly surprised!


Sources/Credits:

Pics;



Credits;

*Professor Roberto Cabeza, from Duke University, North Carolina, United States, said: "Older people have learned to be less affected by negative information in order to maintain their well being and emotional state.”


**McKinsey & Co article on big data digitizing oil and gas at http://www.mckinsey.com/insights/energy_resources_materials/digitizing_oil_and_gas_production


Monday, 22 June 2015

Winning the “War on Talent"

Is “Talent Acquisition” a dirty word?




We all know of the aggressive policies and practices of many businesses nowadays who poach candidates, employees and often leaders with an enthusiasm that alarms for its implications as much as for its practice!

Lets take a current buzzword “Talent Acquisition” as this one sends a clear signal into the marketplace in my view. “Acquiring” talent can place it in the same category as office stationary, which is nothing more then a cost consideration in the execution of the sale transaction at a profit. It seems silly right? I would wager that many businesses strategically position people in this category (e.g. market culture companies), when deciding on what to recruit, how to recruit and how recruitment pre and post hire should handle the candidate to employee journey.

I therefore submit that when augmenting one’s recruiting strategy and tactics, one must consider the following to effectively embrace employees as higher functioning assets adding more value then any ‘cost centre’:



Tactical  | Do to others as has being done to you. We all know the smooth talking recruiter who snatched your star employee and is now looking at your other star performers. If you don’t like the practice of poaching, then don’t do it! High functioning employees with a giver rather then taker mentality will not respond well to being poached or to companies that consider it acceptable behaviour! Remember, just because employees don’t respond, that doesn’t mean they don’t have a problem with it. Timing maybe the only exit trigger remaining for them from your organisation to a company they feel more comfortable at, which by definition is a company that shares more of their values in that regard.

Strategic | Back up your brand with words. If you decide that you are company who is committed to people, a people company of high worth, then great!! Ensure your hiring practices reflect this by never feigning or faking aspects of your company to paint a false picture for the candidate and/or newly minted employee! If candidates and/or employees find out they have being deceived, the likely response is to find another job, especially if their core values are offended. Be genuine to who you are as a company making sure you deliver full understanding of the company as much as you fully understand your candidate.

Strategic | It’s not a war, really, it’s not! The industrialist mentality of “command ‘n control” often escalates into “control ‘n conquer” so being mindful of how aggressively competitive you get. The branding statement of your company and how you want your new hires to interact with it should control the level of aggressiveness in your tactical approach. Remember, the right people will respond to the right message so distribution needs to deliver a strategic message and not become augmented by how it is delivered. Be wary of sub cultures in recruitment using a taker mentality when the company needs high functioning ‘giver’ employees.

Strategic | The Digital Age. One of the key hallmarks of the digital era is social media ensuring that your “digital brand” as a company recruiting is in sync with the company’s digital branding policies, its overall brand statement and the cultural idioms of your company. Millennials have shown a propensity to trust companies who share the full story of who they are, not water down the story to best parts only, or feign aspects of their story to appear more attractive.


Its an age old story of trust and betrayal, which in current terms sees the company who is not afraid of exposure gaining a competitive edge in marketing their products AND their company with a full story for the digital platform, which will attract talent! Talent search more these days for where they belong; rather then who pays the most. If you rely on your employees to be profitable in business, find the right way to connect with them, engage with them and build relationships that are grounded in common values, interests and trust. Build with consistency of action and deliver on promises, which define the employer-employee relationship. If this is done right, then talent will come to you, you wont have to “acquire” it.

Tactical | Develop Your Digital Brand. Online user groups (Facebook/LinkedIn) are a good idea along with meetup.com groups where you can share your company’s story. Topic areas like company culture, company practices, company strategies (i.e. where to for the future) along with relevant educational topics will attract top talent that will add value to your company, once you deliver your meetup.com talks and online events in a genuine and full hearted manner; offering a full story and building relationships with participants as you go! Get to know them and they won’t forget you!

One a final note, if Steve Jobs, Arianna Huffington, Bill Gates and Walt Disney could get rejected from jobs, then its reasonable that top talent has applied to your company and didn’t get the time of day due to being outside of the screening markers implemented to identify suitable candidates. Be mindful of your brand, your culture, your business practices and your role description ensuring that you use markers good enough to capture information that tells you what the candidate is like as a person as much as a professional.


You never know where you next ‘rock star’ will come from! He or she may have the same CV as the career administrator who won’t miss a day of work in the next thirty years for you!! People before Process allows you to use Technology to define a sustainable future that brings your work family with you on the journey!! If done right, success will always overshadow failures when joining the dots in retrospect! A comforting thought indeed! 


Sources/Credits:

Pics





Credits: